Valero, Darling could expand production of renewable diesel in Port Arthur

Facility could produce 400 million gallons of renewable diesel annually

By Dawn Jorgenson - Graham Media Group

A flame burns at an oil refinery near the Houston Ship Channel on Aug. 31, 2017. (AP Photo/Gregory Bull, File)

PORT ARTHUR, Texas - With a growing demand for renewable diesel, Valero Energy Corp. and Darling Ingredients Inc. have initiated an advanced engineering and development cost review for a new plant in Port Arthur, Valero announced Monday.

The proposed facility, the first renewable diesel plant in Texas, would be designed to produce 400 million gallons of renewable diesel annually. It would also produce 40 million gallons of renewable naphtha.

Diamond Green Diesel Holdings would own and operate the 50/50 venture between Darling and Valero.

The production from the plant is expected to increase DGD’s annual renewable diesel production to about 1.1 billion gallons, with almost 100 million gallons of renewable naphtha production.

If a decision is made to move ahead with the project, plant construction could begin in 2021 and end in 2024.

“We expect low-carbon fuel mandates across the globe to continue to drive demand growth for renewable fuels,” said Joe Gorder, Valero chairman, president and chief executive officer. “This project would meaningfully expand our renewable diesel segment, which continues to generate strong results and demonstrates our commitment to environmentally responsible operations.”

Pending further engineering, obtaining necessary permits and the approval by the boards of Valero and Darling, the final investment decision on the project is expected in 2021.



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